Supreme Court dismisses collective agreement clause exempting employer from severance pay if union agrees to termination.
Legislator summary
AI generatedThe Supreme Court partially overturned the appellate court's decision regarding an employee's claim for severance pay after termination. The lower court had ruled that a collective agreement between the employer and unions waived the statutory right to severance if the union agreed to the dismissal, regardless of the reason. The Supreme Court held that such a contractual clause violated the Labor Code by removing the employer's mandatory obligation to provide a valid reason for termination and thus failed to grant the severance pay requested.
Legislator headnote
AI generatedArt. 9 § 1 KP; Art. 38 § 1, § 2 KP; Art. 45 KP; Art. 471 § 1, § 3 KP; Art. 393 § 1 KPC: A collective agreement cannot validly exclude the statutory requirement for an employer to provide a justified reason for terminating an indefinite-term employment contract, nor can it waive the employee's right to severance pay based solely on union consent.